# NFU Mutual

NFU Mutual is a UK insurance composite. As a mutual, its policyholder members own the business, and the executives and directors are accountable to them. The full name of the organisation is National Farmers' Union Mutual Insurance Society Limited.
The business is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with complaints oversight available via the Financial Ombudsman Service.

## History

Founded in 1910 in Stratford-upon-Avon, Warwickshire, as the Midlands Farmers' Mutual Insurance Society Ltd, the company initially provided insurance exclusively to farmers' union members with a 15% premium discount. John William Lowe was the first chair (1910-1918), and James Robertson Black became the first managing director in 1912, serving 42 years (vice-chair 1946-1952); his farmhouse was the first office. First accounts (1911) showed £311 income and £16 profit.
After advising Lincolnshire farmers against forming their own insurer in 1912, the society became the official insurer of the National Farmers' Union in 1919, adopting the name NFU Mutual. It was governed by 16 directors (eight from each organization), limited membership to NFU members, and increased the premium discount to 20%. This led to a significant rise in premium income. Ralph Chisholm, later the first CEO, joined during this period. World War I resulted in a 50% income increase for the NFU Mutual.
In 1920, offices were established in Stratford-upon-Avon. An early director was Sir Basil Brooke; he went on to be Prime Minister of Northern Ireland and revived the Ulster Volunteer Force as a paramilitary organisation.
NFU Mutual became the official insurer of the NFU of Scotland in 1922. In 1928, it launched life assurance and a pension scheme; by 1930, it had £316,000 premium income and eight branches. A separate non-farming insurer, Avon Insurance, was established in 1925 (renamed 1931). The 1930s saw the use of a film unit for promotion. By 1940/41, it had over 100,000 policyholders, £1 million income, and £2 million assets. Assets reached £50m in the 1960s, but a major foot and mouth outbreak in 1967 temporarily stopped new related business. Head offices were built in Tiddington in 1984 with environmental considerations. Around 70% of NFU members were customers by 1985. Storms in 1987 and 1990 cost £30m and £58m in claims.
In July 1998 the Board put before the members proposals to change the Articles to give the Mutual freedom to insure anyone, irrespective of profession or occupation. Seeking to reassure the alarmed core farming customers that the change would not have an adverse impact, a product called Mutual Advantage was set up, restricted to NFU Members, which it was claimed provided extra discounts and cover for farming customers.
In the late 1990s, the demutualisation of NFU Mutual was explored by director John Murray who initially approached five venture capitalists in the hope of launching a bid. Substantial windfalls for members were anticipated.
Commenting to the House of Commons Treasury Select Committee on the possibility of demutualisation, Andrew Young, the then managing director said:
   "In our view, members of a mutual should... decide how the business is run, and if they are not satisfied, they should get rid of the Board and the management rather than demutualise."
In 2002, Andrew Young retired, succeeded by Ian Geden. He became group chief executive in 2005 when that post was created. During his term, the general insurance premium income grew from £603 million to £944 million.
In 2007, a series of floods brought more than 13,000 claims representing a liability close to £100 million.
In 2008, Lindsay Sinclair became Chief Executive (the first such appointment from outside NFU Mutual). He was Group Executive for 12 years, retiring in March 2021. In 2015, NFU Mutual closed two call centres.
In March 2021, Nick Turner became chief executive.
The 2022 drought caused a surge in farm fires, costing NFU Mutual around £100 million in claims. The company also reported over 20,000 claims worth £170 million for Storm Arwen (2021) and Storms Dudley, Eunice, and Franklin (2022). The 2022 Annual Report noted a "Principal Risk and Uncertainty" regarding significant changes in the customer base. Following the 2022 invasion of Ukraine, NFU Mutual announced it would divest its Russian holdings.
NFU Mutual reported receiving over 5,000 complaints (representing 3 complaints per 1,000 policies) from 1 July 2022 – 31 December 2022.
In 2022, the NFU Mutual went to the High Court to bring committal (imprisonment) proceedings against Mr. Khedir, who was sentenced to 10 months of for contempt of court after he admitted to lying about a at a hearing on fundamental dishonesty.
During that year, NFU Mutual won several industry fraud awards and NFU Mutual's Claims Validation Technical Manager David Phillips became chair of the General Insurance Fraud Committee of the ABI.
NFU Mutual was Which? 'Insurance Brand of the Year' for 2022'. In 2023, NFU Mutual was the only Which? recommended provider of home insurance.
The business apologised in 2023 to a third party couple whose garden and swimming pool had been destroyed by a member of NFU Mutual and their buffalo herd.
In January 2024 Ali Capper, a member of the business's Remuneration Committee gave evidence to the Environment Food and Rural Affairs Committee about issues of power abuse and exploitation of farmers in the agri-food supply chain.
In 2024, a woman was successfully prosecuted by City of London Police for a fraud of £500,000 on the business. Later that year, the business apologised to a retired police officer, who was a third party to its policyholder, for making no progress in 2 year period with a subsidence claim for around £100,000 of damage.

## Financial performance

The business reported profits of £164million for 2023. At the end of 2023, its total funds under management were £20.2 billion. The business currently underwrites around £2.222 billion in annual general insurance premiums for UK policyholders.
The business made a loss of £1.04bn reported at the AGM of 2023.
In evidence given to Parliament, NFU Mutual has stated that it has between 65% and 75% of the UK farm insurance market;

### Solvency

In 2022, NFU's Mutual solvency ratio improved by 14% to 218%. The NFU Mutual has asked the Prudential Regulation Authority to reduce the scale of reserves required for it under Solvency II Regulations. This is still in place for NFU Mutual.

### Accountancy

In 2022, the Financial Reporting Council asked about declarations regarding its exposure to Business Interruption claims because of requirements of section 21 ‘Provisions and Contingencies’ of FRS 102s. The FRC stated NFU Mutual 'provided a satisfactory response'.

## Governance
### Membership

The management and conduct of the business is done under the authority of the members/policyholders who are senior to the directors and executives and may dismiss them.
There are around 900,000 members of the NFU Mutual. As NFU Mutual has no shareholders, a proportion of its profits, if any, are returned to policyholder members in the form of an adjustment on quoted premiums of renewing customers. A discount of between 8.5% and 13.5% (2022/2023) is asserted by the Mutual which the business brands "Mutual Bonus". Under NFU Mutual's articles of association, each policy generates a distinct right to speak and vote at the Annual General Meeting (AGM), scrutinise the accounts, and hold the management to account, as well as an ownership right in the business. The AGM has generally been held at the British Motor Museum at Gaydon, Warwickshire and is open to all policyholder members. In 2024 it was moved to a Leonardo's Hotels venue off the M69.

### Senior leadership team

Board members "are responsible for the overall direction of the Company and setting the Company's values and standards". As of Spring 2023, it consisted of the following people:
* Jim McLaren MBE (chair), a farmer from Scotland
* Nick Turner (CEO), formally held offices at AXA
* Richard Morley (Finance Director), held positions at Lloyds Banking Group where he was finance director of the bank's international financial services business at the time of the 2008 financial crisis
* Rachel Kelsall (Customer Services Director), a former head of compliance
* Nick Watson (Sales & Agency Director) joined NFU Mutual from AXA
Non-executive directors are:
* John Deane sometime CEO of Chesnara who has served as a board member of Atom Bank, Royal London Group, Old Mutual, and Century Life;
* Ali Capper a director of the Oxford Farming Conference, a Nuffield scholar and an advertising operative
* Jon Bailie Senior Independent Director formally held office at AXA
* David Roper also the Senior Independent Director of Atom Bank and is also Chair of the National Youth Choirs of Great Britain
* David Smith currently Chair of Altitude Plc
* Alan Fairhead held offices in Zurich Insurance Group
* Sarah Simpson
On 1 April 2023 Elizabeth Buchanan joined the board of NFU Mutual as a non-executive director, however, she resigned just over 6 months later.
The NFUM's current Group Head of Legal and Company Secretary is Sian Johns, who took over from Jim Creechan during 2024.
Beyond this the executive team has these additional people: Gina Fusco (Strategy & Marketing Director), Trisha Jones (HR Director). NFU Mutual has announced the imminent replacement of this directors – Bev Mitchell will take up a role as Marketing and Digital Director and Kenny Graves will be HR Director.

### Gender pay gap

In the 2021 report, there was a gender pay gap of 24.5% based on hourly wage (mean). The bonus gap is 50.9% (mean). The 2023 Gender pay gap report says "Much of NFU Mutual's Gender Pay Gap can be attributed to the structure of the workforce."
NFU Mutual was written to by the Equalities Minister in 2018 about its non-engagement with the Women in Finance Charter, which it later signed the same year.

### Climate change

In 2022, NFU Mutual announced a carbon reduction strategy relating to its own operations. Targets include a 25% reduction in the business's own emissions by 2025 and a 50% reduction by 2030. To support this, NFU Mutual said it aims to maintain 100% renewable electricity purchase for its occupied premises. For its investments, the insurer is targeting a 50% emissions reduction in its equity and corporate bond portfolio by 2030.
In 2020, Ethical Consumer criticised NFU Mutual for "just talking about the climate impact of their offices" rather than the "far more significant impact of their investments". NFU Mutual responded saying: "We avoid areas we consider harmful such as predatory lenders, certain munitions, and climate-unfriendly companies with no plans to help decarbonisation."

## Operations
### Services and products

NFU Mutual offers personal and business as well as motor private and commercial motor insurance. They specialise in agricultural insurance.
NFU Mutual sell life insurance products including term assurance, critical illness, and income protection through AIG. The business also offers various investment and pension products, including ISAs and With-Profit funds, and sells financial advice and inheritance tax planning.

### Relationship with farming unions

NFU Mutual is the official insurer of the main farming unions of the UK, and has a long-running affiliation with them. Each year the insurer makes significant financial contributions to the UK farming unions, donating around £7 million to them in 2021.
The insurer's associations with each union began as follows: National Farmers' Union of England and Wales (1919); NFU Scotland (1922); Ulster Farmers' Union (1930); Manx NFU (1947); and Scottish Crofting Federation (1986).

### Agencies

NFU Mutual sells policies predominantly through a network of agents. Agents were traditionally Group Secretaries of the NFU. The Union, as employer, paid them a salary and the Mutual paid them commission. At the end of 2018, NFU Mutual had over 3,800 employees, and 654 agents working out of 310 offices.

### Property dealing and development

In 2021, NFU Mutual bought a unit near Milnrow for £27 million, and also committed to spending £100 million on six sheds near Clowes. Also in 2021, NFU Mutual's plans to invest in a warehouse in Witney attracted over 190 objections. NFU Mutual responded saying the warehouses would create 150 jobs that will benefit the local economy and will add much-needed high-quality space to the area. In April 2022 NFU Mutual's management allocated in excess of a further £20 million of members' funds to this speculative investment with its commercial partner Tungsten.
In March 2022, plans were announced to build a speculative £34 million shed in Staffordshire. Work has since begun on the shed. In April 2022, a shed was traded with Valor for £50 million.
In July 2022, NFU Mutual sold eight warehouses to American-based investment firm Barings LLC for £234 million and the negotiations were described as "contentious" when the deal completed in 2023.
In October 2022, along with partners Apache, NFUM obtained a loan of £70 million from Deutsche Bank to finance a £150 million build-to-rent development in Liverpool. A 325 rental-home unit neighbourhood in Liverpool was funded with NFUM capital and loans and opened in late 2022. It is reported to be the UK's largest build to rent project.
In May 2023, it was revealed that the business was to sell another £90 million worth of real estate assets.
NFU Mutual has recently liquidated retail assets on London: 24 Old Bond Street was sold for £141 million; 3/5 Bond Street was sold for £151 million.
2024 saw the business spend £20 million on another office building.
In 2025, the business closed its headquarters in Belfast and placed it on the market for £5 million; at the time over 60% of the rental area was vacant. It also confirmed it was closing part of its office accommodation in its Stratford headquarters territory. It also disposed of over £100 million of logistics assets in an off-market deal.

## Subsidiaries

The business lists the following active subsidiaries:
* N.F.U. Mutual Unit Managers Limited: (No. 1837277). Registered in England. Registered Office: Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. Authorised corporate director of The NFU Mutual OEIC.
* The NFU Mutual OEIC: (No. IC000220) An investment company with variable capital incorporated in England. Authorised by the Financial Conduct Authority. Financial Services Register number 407816.
* The NFU Mutual Portfolio Funds OEIC: (No. IC000745) An investment company with variable capital incorporated in England. Authorised by the Financial Conduct Authority. Financial Services Register number 496718.
* NFU Mutual Select Investments Limited: (No. 8049488) Authorised by the Financial Conduct Authority. Financial Services Register number 582519
* Risk Management Services: NFU Mutual Risk Management Services Ltd. is a health and safety company set up in 1997. NFU members receive a discount on some Risk Management Services through Union Advantage.

### Islands Insurance

NFU Mutual acquired the Islands Insurance Group in 1987, providing access to NFU Mutual products for customers in the Channel Islands.

### Avon Insurance

Avon Insurance was established in 1925 to provide insurance to non-farming customers. The establishment of this enterprise was opposed by the NFU hierarchy and the NFU Mutual directors were required to agree that they would "consult on such matters in future". Business increased in the 1970s at 25–30% each year, and Avon opened an underwriting room near Lloyd's insurance market in 1977. In 1975, Avon became one of the first companies to introduce index-linking of sums insured to protect customers against inflation. Avon closed to new business in 2013.

### Other insurance operations

In 1929, NFUM bought another farming insurance company, Northern Farmers. Between 1948 and 1974, NFUM had operations alongside unions in Central and East Africa, including what was then known as Rhodesia and Kenya. Operations in Kenya ceased in 1964 and Rhodesia in 1974.

## Charitable activities
### NFU Mutual Charitable Trust

NFU Mutual set up a Charitable Trust in 1998 to deal with need concerned with 'agriculture, rural development and insurance.' In 2022, it pledged to donate £1m to 'national and regional charities' as part of NFU Mutual's overall donation of £3.25 million to charity. In 2022, it donated £30,000 to help the NFU support and expand its education projects. In the past 24 years the independent charity has distributed funds averaging around £250,000 per year. In 2022 the NFUM Charitable Trust pledged £150,000 to Disasters Emergency Committee's Ukraine Appeal.

### Farm Safety Foundation

In 2014, NFUM set up the Farm Safety Foundation, an independent charity to help young farmers challenge their behaviours and change their attitude to farm safety. The foundation aims to have zero avoidable deaths on farms and runs an annual Mind Your Head campaign concerning mental health issues.

### Agency Giving Fund

In 2020, NFU Mutual set up a fund for its agency offices to use in order to distribute money to charities in their local communities. A total of £1 million was distributed in the first year. In 2021, the Agency Giving Fund distributed £2 million to charities and in 2022 it distributed £1.92 million.

## Research and reports

Each year, NFU Mutual issues a Rural Crime report based on its claims data. In 2023, the report showed rural crime cost the UK an estimated £49.5 million in 2022, an increase of £9 million from the year before. The 2022 edition of the report indicated that rural crime cost the countryside £40.5 million in 2021, down from £44.7 million in 2020.
In October 2022, the business released research indicating their customers had "put a hold on their [investment] plans while ... assessing uncertainty overshadowing" them.
Since 2016, NFU Mutual has produced an annual responsible business report.

## Notable people

During World War II, Arthur Scarf, an employee was awarded a posthumous Victoria Cross.
A former First World War pilot, George Lindsay, was NFU Mutual General Manager between 1944 and 1955.
A former chairman of NFUM is Lord Curry of Kirkharle.
Harold Woolley, Baron Woolley was a director retiring in the 1980s.

## Noteworthy court cases

In Smith (Leah) v National Farmers Union Mutual Insurance Society Limited and Robinsons Services Limited [2019] NIQB 37, the company denied liability for an accident sustained during an employee's attendance at work, but the court found against the company.
In 2017, Preston-based law firm Barber & Co were ordered to pay costs to NFU Mutual after the firm represented a claimant in an injury case without instruction. Barber & Co lost the case and HHJ Peter Hughes referred the case onto the Solicitors Regulation Authority, Lancashire Police and the Crown Prosecution Service for further action. The law firm claimed the case was the result of "two non-qualified fee earners creating false documentation."
In 2016, NFU Mutual denied liability for a £128,000 bill for damage to a cottage from a burst water pipe. NFU Mutual lost the case and was ordered by Mr Justice Holgate to pay £100,000 in legal costs on top of the damage.
In 2010, NFU Mutual sought compensation from HSBC towards fire damage to a property on the basis of double insurance but the judge agreed with HSBC and NFU Mutual was liable for the full extent of the claim.
Lately, NFU Mutual has been a defendant/party in a number of contested cases where anonymity orders have been sought:
* JXZ -v- NFU Mutual Insurance Society Limited
* SS1 -v- Retter
* JSV -v- AGC and another

## Controversies
### Frauds

In 2011, employee Gordon Murray was jailed for his fraud on the members of £400,000.
Clive Thomas Wade, a salesman for a kitchen business in the UK, was sentenced to three years' imprisonment in June 2016 for perpetrating a £114,000 insurance fraud against NFU Mutual by fabricating the basis of a claim and submitting false documentation to support an inflated claim.
In 2018, Iain Wishlade also an NFU employee, was jailed for submitting a fraudulent payment request from his business LDK Ltd to NFU Mutual.

### Business interruption and COVID-19

NFU Mutual sold policies which were considered 'potentially affected policies' linked to the Financial Conduct Authority test case on business interruption payments during COVID. Following the first instance decision in the High Court and the appeal to the UK Supreme Court in this case NFU Mutual published a statement saying it felt judgment of the court meant it had no liability to meet claims for COVID-19 related business interruption.
However, in 2022 and after considering the implications of th UK Supreme Court decision in the FCA test case, a number of policyholders considered that the NFU Mutual was not applying the law correctly and was obliged to pay out on these policies. These policyholders formed litigation group and announced plans to bring proceedings in a group action against NFU Mutual for which they instructed Penningtons Manches Cooper LLP.
At stake is a potentially multi-million pound liability for NFU Mutual.
2024 this case came to court. As of early 2025 this litigation continues with a defence and a reply filed in the High Court and the matter expected to go to trial during 2025.
It has also come to light that NFU Mutual was already, in 2023, defending another class action associated with these kinds of liabilities which was filed in the court and served on them before the financial year end of 2023. This case is with the Solicitors Barings Law with Claim Number CL-2023-000589.
In a Chartered Institute of Insurance podcast at the beginning of the pandemic in May 2020, Nick Turner (at the time sales and agency director, and subsequently CEO) stated that the company would "have to work to renew trust with certain customers", but that this would be "challenging". Turner accepted that policyholders not receiving business interruption payments could impact their welfare and mental health in this same podcast, a point reiterated in commentary by chairman Jim McLaren in another podcast, who said: "And you mentioned mental health and it's a crucial area and one that's often overlooked other than by those who are suffering from real mental health challenges. And again, the Mutual recognises that."
As general context, of 370,000 UK business interruption insurance policyholders, only 43,027 claims have been paid out by insurers according to data published by the FCA in March 2023.
One policyholder involved said: "They have quite happily taken the premiums for the last 15 years but the one time I need it I'm not going to get any help off them. It's disgusting that the insurance industry is allowed to do this".
In April 2020, an NFU Mutual customer questioned the insurer's position on business interruption in evidence to the House of Commons Treasury Select Committee.
In 2021 NFU Mutual was named in an article that alleged it was one of several firms 'deliberately delaying' COVID-19 claims to avoid payouts, on the basis firms would "go bust" before they had to pay them.
Commenting on the situation, the Professional Association of Self-Caterers said:
   [NFU Mutual has] had a challenging Covid [of which this latest] joint action against NFU for failure to pay out under Business Interruption [is yet another part]. Their cheaper Home and Lifestyle policy paid out for Covid, but the more expensive policy did not [pending the outcome of the litigation]
In February 2023, it was reported in the Insurance Post that "complaints over missing cover for Covid-related booking cancellations upheld."

### COVID-19 grants

In November 2020, following criticism and campaigning the company's conduct in deducting COVID-19 support grants from its payments triggered by COVID-19 were called into question in debate in the House of Commons with John Glen MP stating: "I am aware that NFU Mutual has continued to make such deductions. As stated in my letter, these grants are intended to provide emergency support to businesses at this time of crisis, and it is the Government's firm expectation that they are not to be deducted from business interruption insurance claims."

### Director pay

In 2011, the issue of excessive pay has received negative attention, with the Insurance Times quoting an observer as saying: "Only two words come to mind – and they are 'snout' and 'trough'.
In 2013, a director of NFU Mutual, David Anderson, was scrutinised for his role as chief executive of the troubled Co-operative Bank during its financial collapse which had a capital short fall of £1.5bn. NFU Mutual's board left Anderson in place, going further and issuing a statement saying they benefited from his kind of advice and 'had no plans to review his appointment'.
In 2023 the CEO, Nick Turner took total remuneration, including pensions long term incentive plan etc of £4.3million.